AG Nessel to Challenge Consumers Energy’s $456M Rate Hike Request
Michigan’s top prosecutor vows to fight Consumers Energy’s massive rate hike as utility seeks $456M increase to fund grid improvements.
LANSING, MICHIGAN — Michigan Attorney General Dana Nessel announced plans to intervene against Consumers Energy’s request for a $456 million electrical rate increase, while raising broader concerns about the state’s energy cost regulation system.
On Monday, Consumers Energy submitted an application to the Michigan Public Service Commission seeking the substantial rate increase. The utility company also requested approval for a 12-month surcharge totaling $25 million to cover additional spending on energy distribution that was not accounted for in its rates between March 1, 2025 and February 28, 2026.
Storm Restoration Costs Drive Additional Requests
Consumers Energy has requested an additional $52 million spread across three years to cover storm restoration expenses brought on by a series of ice storms that hit Michigan in March and April of 2025. The company stated the increased rates would allow better management of power outages.
“We want our customers to experience fewer outages, and when the power does go out, we’re focused on restoring it as quickly as possible,” said Greg Salisbury, Consumers Energy’s senior vice president of electric distribution, in a statement released ahead of the filing. “Our 2027 Reliability Action Plan is about making smart investments in the electric grid to deliver more reliable service for the people we serve.”
Attorney General Commits to Ratepayer Advocacy
Nessel’s announcement marks another instance of the attorney general’s office intervening in utility rate cases on behalf of Michigan residents. The attorney general has previously challenged rate increases from major energy companies operating in the state.
Salisbury added that the company understands customer concerns about costs. “We know costs are top of mind, and we’re working every day to keep energy affordable while making the upgrades to reduce outages over time,” he said.
Regulatory Review Process Ahead
The Michigan Public Service Commission will review Consumers Energy’s rate increase application through a formal regulatory process. As one of Michigan’s largest energy companies, Consumers Energy serves millions of customers across the state.
Nessel’s intervention will allow her office to participate in commission proceedings and advocate for ratepayer interests during the review process. The attorney general has also indicated broader concerns about Michigan’s current system for regulating energy costs, though specific details about potential reforms were not immediately available.
The commission will evaluate the company’s justifications for the rate increases, including infrastructure investments and storm restoration expenses, before making a final determination on the requested changes to customer billing rates.
